Aussie Broadband Ltd. (ABB) AI Stock Analysis

• Market Cap: AU$1.50B
• Dividend Yield: 1.27%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 57.9
• Beta (1Y): 1.30
• Revenue Growth: 18.74%
• EPS Growth: 14.89%
• Country: AU
• Employees: 1,800
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.02
• Shares Outstanding: 293,393,950
• 10 Day Avg. Volume: 1,354,314
• 30 Day Avg. Volume: 1,220,900
• PEG Ratio: 2.70
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 0.97
• P/FCF Ratio: -131.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$6.12
• Price Target Upside: 20.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.21
• Revenue Forecast (FY): AU$1.31B

• Rating: 54 Neutral
• Price Target: AU$4.50 ▼(-11.59% Downside)
• Action: Reiterated Date: 11/19/25
• Date: Action: Reiterated 11/19/25

The overall stock score for Aussie Broadband Ltd. is primarily influenced by its strong financial performance, particularly in revenue growth and operational efficiency. However, the stock faces challenges with cash flow management and technical indicators suggest bearish momentum. The high P/E ratio raises concerns about overvaluation, while the dividend yield offers limited income potential. These factors collectively result in a moderate overall score.

Positive Factors

Revenue Growth Trend

A sustained ~18.7% revenue growth rate indicates robust demand and successful customer acquisition across residential and business segments. For a subscription-driven telecom, consistent top-line growth supports scale benefits, recurring revenue stability, and long-term investment capacity in network and service expansion.

Operational Efficiency (EBIT/EBITDA)

Healthy EBIT and EBITDA margins point to efficient cost structure and operational leverage in delivering broadband services. Strong margins support reinvestment in network infrastructure and customer service, and make earnings more resilient to cyclical demand shifts over the medium term.

Improved Leverage and Equity Base

A debt-to-equity of ~0.47 and a ~50% equity ratio indicate a balanced capital structure and solid equity cushion. This reduces refinancing risk, preserves financial flexibility for capex and strategic initiatives, and supports investment in network upgrades without excessive leverage pressure.

Negative Factors

Weak Free Cash Flow

Significant decline in free cash flow and an operating cash flow to net income ratio of 0.28 show weak cash conversion. Over months, this constrains the company's ability to self-fund capex, reduce debt, or increase shareholder returns, increasing reliance on external financing.

Low Net Profit Margin

A modest net margin near 2.8% leaves limited headroom against rising costs or wholesale price pressure. For a telco with sizable wholesale inputs, low net profitability reduces resilience to margin compression and limits free cash flow available for strategic investments.

Dependence on Wholesale NBN Inputs

Relying on wholesale NBN inputs means ABB's unit economics are partly set by third-party pricing and regulation. Structural exposure to wholesale tariffs and regulatory change limits margin control and can materially affect long-term profitability and competitive positioning.

Aussie Broadband Ltd. Business Overview & Revenue Model

Company Description

Aussie Broadband Limited provides telecommunications services to residential and businesses in Australia. It operates in four segments: Residential, Business, Wholesale, and Over the Wire. The company offers national broadband network services, cloud, and security services. It also provides a range of other telecommunications services, including VoIP, mobile plans and headsets, and entertainment bundles to residential, small business, and large business/enterprise customers. As of June 30, 2022, it served approximately 462,369 customers. The company was incorporated in 2008 and is based in Morwell, Victoria.

How the Company Makes Money

Aussie Broadband generates revenue primarily through subscription fees from its broadband and mobile service offerings. The company operates on a direct-to-consumer model, selling various NBN plans that cater to different customer needs, which contributes significantly to its earnings. Additionally, ABB earns revenue from VoIP services and value-added services such as web hosting and security solutions. The company has established partnerships with network infrastructure providers to enhance its service delivery, which helps maintain competitive pricing and improve customer retention. Furthermore, ABB's commitment to customer service and its reputation for reliability contribute to a growing customer base, thereby driving revenue growth.

Aussie Broadband Ltd. Financial Statement Overview

Summary

Aussie Broadband Ltd. shows strong revenue growth and operational efficiency, as evidenced by healthy EBIT and EBITDA margins. The balance sheet reflects a stable financial position with improved leverage ratios. However, cash flow management remains a concern, with negative free cash flow growth impacting overall financial health. The company should focus on enhancing cash flow generation to support future growth.

Income Statement

Aussie Broadband Ltd. has demonstrated consistent revenue growth over the years, with a notable 3.93% increase in the most recent year. The company maintains a strong gross profit margin of 100% due to its revenue recognition practices. However, the net profit margin remains modest at 2.77%, indicating room for improvement in cost management. The EBIT and EBITDA margins are healthy, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.47, indicating a balanced approach to leveraging. Return on equity is moderate at 6.02%, suggesting effective use of equity but with potential for higher returns. The equity ratio stands at 50.38%, showing a solid equity base relative to total assets.

Cash Flow

Aussie Broadband Ltd. faces challenges with free cash flow, which has declined significantly, resulting in a negative growth rate. The operating cash flow to net income ratio is 0.28, indicating that cash generation from operations is not fully covering net income. The negative free cash flow to net income ratio highlights the need for improved cash management.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.24B	1.19B	999.75M	787.95M	546.94M	350.27M
Gross Profit	170.82M	1.19B	135.19M	104.93M	64.52M	49.38M
EBITDA	148.42M	139.90M	113.84M	98.60M	35.13M	5.66M
Net Income	25.75M	32.84M	26.38M	21.72M	5.32M	-4.49M
Balance Sheet
Total Assets	1.08B	1.08B	1.24B	693.59M	628.50M	116.91M
Cash, Cash Equivalents and Short-Term Investments	114.76M	130.96M	214.13M	76.17M	48.83M	57.02M
Total Debt	286.42M	258.49M	351.55M	204.00M	216.67M	10.56M
Total Liabilities	511.64M	536.85M	667.65M	401.81M	359.77M	57.37M
Stockholders Equity	570.47M	545.34M	570.10M	291.78M	268.72M	59.55M
Cash Flow
Free Cash Flow	51.66M	-8.69M	28.91M	67.58M	-4.68M	8.15M
Operating Cash Flow	81.51M	68.40M	120.22M	116.68M	37.79M	25.28M
Investing Cash Flow	-60.94M	18.67M	-247.47M	-46.05M	-308.08M	-17.13M
Financing Cash Flow	-41.31M	-170.82M	266.21M	-43.30M	261.00M	27.42M

Aussie Broadband Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.09
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ABB, the sentiment is Positive. The current price of 5.09 is above the 20-day moving average (MA) of 4.80, above the 50-day MA of 4.85, and above the 200-day MA of 4.86, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 57.97 is Neutral, neither overbought nor oversold. The STOCH value of 51.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ABB.

Aussie Broadband Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLS	64 Neutral	AU$58.98B	26.42	14.73%	3.91%	0.86%	34.23%
SLC	64 Neutral	AU$1.40B	102.55	0.21%	―	31.16%	―
MAQ	62 Neutral	AU$1.63B	48.07	7.40%	―	1.75%	0.42%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ABB	54 Neutral	AU$1.50B	57.94	5.89%	1.27%	18.74%	14.89%
TPG	54 Neutral	AU$7.68B	-96.78	-0.93%	47.35%	-5.04%	-349.38%

Aussie Broadband Ltd. Corporate Events

Aussie Broadband Plans June 2026 Share Placement to Raise Capital

Aussie Broadband Limited has notified the ASX of a proposed issue of up to 22,031,086 new fully paid ordinary shares. The securities are to be issued via a placement or similar mechanism, with the proposed issue date set for 15 June 2026, indicating a planned capital raising that may support the company’s ongoing operational or strategic initiatives and could influence its capital structure and market positioning.

The company has submitted the required details under the ASX Listing Rules, confirming its intention to seek quotation of the new securities once issued. This planned issuance will expand the company’s share base and may have implications for existing shareholders through dilution, while potentially providing additional funding capacity to pursue growth or investment opportunities in Australia’s telecommunications sector.

The most recent analyst rating on (AU:ABB) stock is a Hold with a A$4.50 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

Aussie Broadband to Buy AGL Telco and Strike Exclusive Partnership

Aussie Broadband has agreed to acquire AGL Energy’s telecommunications business, AGL Telco, adding an estimated 350,000 broadband and mobile services and 46,000 voice services to its customer base once migration is complete. The deal, expected to close in June 2026 with migration finalised in the first half of FY27, will be paid mainly in shares, with an upfront $115 million equity component and up to $10 million in additional performance-based share tranches.

Alongside the acquisition, the companies have entered a long-term exclusive partnership under which AGL will continue to market telco products under the AGL brand while Aussie Broadband provides the underlying services and customer experience. Aussie Broadband expects the agreement to generate about $235 million in revenue and $21 million in underlying EBITDA in the 12 months after migration, be EPS accretive in the first year post-migration, and help position it as Australia’s third-largest NBN provider with more than 1.25 million broadband connections and nearly 400,000 mobile services, delivering further scale and network synergies over time.

The most recent analyst rating on (AU:ABB) stock is a Hold with a A$4.50 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

Aussie Broadband Names Veteran Finance Executive Darren Rowland as New CFO

Aussie Broadband has appointed seasoned finance executive Darren Rowland as its new Chief Financial Officer, effective 23 February 2026, following the previously announced resignation of current CFO Andy Giles Knopp, who will remain until 11 March to ensure a smooth handover. Rowland, a Chartered Accountant with more than 25 years’ experience across finance, strategy, M&A and capital markets, joins from Lifestyle Communities, where he helped steer significant growth, funding initiatives and systems upgrades, and his appointment is positioned as a key move to support Aussie Broadband’s next phase of expansion, sharpen its financial discipline and bolster its execution of a growth strategy in an increasingly competitive telecommunications market.

The most recent analyst rating on (AU:ABB) stock is a Hold with a A$5.35 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

Aussie Broadband Sets Date for H1 FY26 Results and Investor Briefing

Aussie Broadband Limited has scheduled the release of its financial results for the half year ended 31 December 2025 (H1 FY26) on 23 February 2026, accompanied by a same-day investor and analyst briefing hosted by its CEO and CFO via webcast and conference call. The timing and structured briefing underline the company’s ongoing engagement with the investment community and provide a key upcoming checkpoint for stakeholders to assess its growth trajectory and positioning in the competitive Australian telecommunications market.

The most recent analyst rating on (AU:ABB) stock is a Hold with a A$5.35 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.

Aussie Broadband Completes Significant Share Buy-Back

Aussie Broadband Ltd. has completed a buy-back of 9,024,191 of its ordinary fully paid securities, amounting to a total consideration of AUD 35,864,889.30. This move is part of the company’s strategic financial management, potentially enhancing shareholder value and reflecting confidence in its market position.

The most recent analyst rating on (AU:ABB) stock is a Hold with a A$5.00 price target. To see the full list of analyst forecasts on Aussie Broadband Ltd. stock, see the AU:ABB Stock Forecast page.